Poorest paying nearly 50% of income to debt

Poorest paying nearly 50% of income to debt

A new report by the Institute of Fiscal Studies, carried out on behalf of the Joseph Rowntree Foundation, has found that one in five on low incomes have problem debts, compared with one in twenty on the top pay scales. It also found that on average the poorest fifth, are under pressure to spend £457 a month on paying back their debts out of an income of £1,012.

About a third of the poorest tenth of households are also likely to owe more than they have in savings, compared to only 10% of those in the top 10% income groups.